Further Evaluation of the Proposed Interim Consolidation of the Nuclear Regulatory Commission

GAO was requested to respond to questions on the proposed interim consolidation of the Nuclear Regulatory Commission (NRC). These questions sought additional information and further explanation of matters discussed in a prior report.

GAO concluded that both interim consolidation options could help strengthen NRC. Key factors have changed in favor of the proposed interim consolidation: (1) General Services Aministration (GSA) estimates that the alternative interim consolidation would cost about $1.3 million for renovation and personnel moving costs rather than $500,000 as reported earlier; and (2) the Administration has deleted the office building for NRC from the fiscal year 1982 Federal Building Fund budget. Therefore, the prospects for an early permanent consolidation of NRC have diminished. The higher estimated cost of the alternative option, coupled with the diminished prospects for an early permanent consolidation, makes the cost differential between the two options less important in selecting one of them. Finally, it is uncertain that the other agencies would directly relocate their components to suburban Maryland or other space acquired by GSA. Faced with this prospect, some of them might make larger space readjustments within their organizations to maintain or enhance their overall effectiveness. Thus, the proposed NRC interim consolidation could have a domino effect on other agencies and result in higher costs than previously estimated.